Tesla is a US electric vehicle (EV) and renewable energy company that specialises in the design and manufacturing of electric cars, energy generation, and energy storage. It was founded in 2003 by engineers Martin Eberhard and Marc Tarpenning, with headquarters in Palo Alto, California, as well as Austin, Texas, where its primary Gigafactory is located.
The company’s name is a homage to Nikola Tesla, best known for inventing the first alternating-current (AC) motor and the rotating magnetic field, which are still vital parts of the modern-day electricity system.
In 2004, South African entrepreneur Elon Musk became the largest shareholder in TSLA stock with an investment of $6.5m. Musk was already known by then as the founder of digital bank X.com, which merged with Confinity to form the international payments company, PayPal. Musk went on to become Chairman of the company and later Chief Executive Officer (CEO) in 2008. He was also added as a co-founder in a lawsuit filed in 2009.
What does the company do?
It was originally formed as Tesla Motors with the idea that electric cars could perform just as well as, if not better than, traditional fossil fuel-powered vehicles, while also helping to cut emissions. The company designs, develops, manufactures and retails electric vehicles and automotive parts, including some of the world’s most popular EV models such as the Model S and the Model 3. It is also involved in developing autonomous and self-driving vehicles through its Autopilot technology.
In 2017, the company changed its name to Tesla Inc (dropping ‘Motors’ from the title) in order to reflect the expansion of the business, which had grown from a purely automotive focus to encompass operations in the fields of solar power and lithium-ion batteries. It also manufactures a set of energy solutions, enabling homeowners, businesses and utilities to manage renewable energy generation, storage and consumption.
The company has operated many subsidiaries that are engaged in similar sectors, including Tesla Energy (formerly known as SolarCity), Maxwell Technologies (until July 2021), and DeepScale.
An overview of Tesla’s products
The Roadster
In production between 2008 and 2012, the Roadster was the first highway-approved battery electric vehicle (BEV) sports car to use lithium-ion battery cells and travel more than 320km per charge. The business sold around 2,450 Roadsters in over 30 countries worldwide.
Model S
In production since 2012, Model S is the world’s first premium all-electric sedan with the longest range of any EV. As measured by Motor Trend, it has a record 0-60mph acceleration time of 2.28 seconds.
Model X
Introduced in 2015, Model X is a sports utility vehicle (SUV) that holds 5-star safety ratings across each of the US National Highway Traffic Safety Administration’s categories. It can travel up to 580km on a single charge and is compatible with the company’s Supercharger technology stations.
Model 3
Introduced in 2016, Model 3 is a low-cost, high-volume sedan intended for the mass market. Strong demand and production delays initially led to delivery shortfalls, resulting in Tesla shares becoming some of the most shorted in the market. Since 2018, Model 3 has been the world’s most sold EV each year, according to Statista.
Model Y
Introduced in 2019, Model Y is a midsize crossover SUV seating up to seven passengers. It has similar components to Model 3 and has an EPA range of up to 525km.
Cybertruck and Semi
Currently in production, the Cybertruck is expected to be more durable than a traditional pickup truck while offering the acceleration and performance of a sports car. The Semi, an electric trailer truck, is designed to save customers at least $200,000 in fuel costs over a million miles.
Energy solutions
Several renewable energy solutions are developed, built and retailed by the business’ energy subsidiary. Products include Powerwall (a home energy storage device), Powerpack (a rechargeable stationary product for businesses), and Solar Roof (a solar/photovoltaic shingle system).
Company statistics
Since the unveiling of its first EV model in 2008, Tesla has sold almost 2 million vehicles worldwide.
It employs more than 70,000 staff across six manufacturing facilities, 12 head offices, 100 service centres, and 400 stores.
Additionally, it operates Supercharger systems in over 3,000 locations across 40 countries. Between 2019 and 2021, the number of locations increased by 86%, highlighting the growth of the company and the uptake of EVs.
What is Tesla’s market share?
Tesla ranks as the world’s biggest seller of plug-in and battery electric vehicles, with a market share of around 24% in the US, according to JATO Dynamics.
In the overall US automotive market, however, the brand's market share is a lot smaller, accounting for roughly 2.6%, according to Statista. In addition to its US sales, the business reports consistent sales to China, Germany, Netherlands, Norway, and Denmark.
Tesla’s share price history
Tesla stock is listed under the ticker TSLA on New York’s Nasdaq exchange, which is noted for holding many innovative technology companies. TSLA is a constituent of the blue-chip Nasdaq 100 and is also listed on the S&P 500 stock index. The company had its IPO in 2010.
Given the high demand for energy alternatives, the business has expanded over the years. This has helped make the company much sought-after by investors, causing Tesla’s share price to soar. In October 2021, it became the sixth company in the world to reach a $1tn valuation.
So, why is the TSLA stock price so high? Some analysts attribute this to the boom in electric vehicle and renewable energy stocks. The Covid-19 pandemic had a notable effect, too. It has also been identified as a “meme stock”, a label that emerged in 2020 and denotes companies that gained a popular following among retail traders on social media platforms such as Reddit and Twitter. These factors have helped drive up the company’s share price over the long term, though the stock has also fallen during periods of volatility.
In 2019, Tesla was one of the most shorted stocks in the world, according to Barrons. It had a short interest of more than 30% due to its high valuation compared to other carmakers, controversial CEO, and high production costs that often caused delays in supply. However, since then traders have become more bullish on the stock as the company reached consistent profitability and was added to the S&P 500 at the end of 2020. TSLA’s current short interest sits at around 5%, according to ORTEX, with its share price frequently reaching new highs.
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